On Morning Ireland this morning, the standard "encourage investment in the country" stuff. Are private sector pensions likely to get hit in the next budget? I'm not sure the last 0.5% off the top got a sufficiently negative reaction that it would discourage the government...

Jesus Christ, he really boils my blood!!
What is it with this guys and private pensions? He's been banging this drum for quite a while now.

Most private pensions (mine included) are down a significant amount as it is.
Now this wast of oxygen wants to raid the last trough he hasn't managed to get his filthy snout into.

David, beg somewhere else, the trough is empty!!

I note that he doesn't call for a reduction in the benefits from Public sector pensions, for the good of the economy, of course.

The levies will increase, be under no illusions about that. The government see private sector pensions as a great big piggy bank and they will draw from it as often as they can. They will use the excuse that it is untaxed money, so everyone should share the pain (except the PS, of course)

It is absolutely pointless paying into a pension now. With tax relief set to be reduced, levies within the fund, costs from the useless managers, abysmal performance and likely reduction of the lump sum on retirement, you are probably better off keeping the money outside.

Should be uploaded here sometime
http://www.rte.ie/radio1/podcast/podcas ... reland.xml

While I like the idea, I'd personally be throwing away an employer's contribution of 6%, more than double the 5% contribution I make myself. I'm not sure I can beat the investment managers to that extent.

No. Choose a low risk, lower cost fund. Go self directed/personal pension. The initial tax relief means its still worthwhile.

Then as jB says you may have employer contributions.

Yes go execution only, into a cash/deposit fund.

However as said they may increase levies, reduce TFLS and money is tied up to 60. While tax relief is still at the top rate its worth it. If thats changed - very little incentive then.

It’s one thing setting up a Irish infrastructure fund, but getting people to voluntarily opt into that high-risk-low-return product isn’t so easy. Begg probably won’t know that more pension fund owners are now selecting their own fund portfolio. Either he thinks that the government can simply order the pension companies to invest a portion of the total pension savings into this or that pension owners will be only too delighted to buy into this Trocaire fund of his.

Possibly the Irish active fund managers are dumb enough to invest voluntarily in such a scheme – they have form. But these active funds are quite easy to avoid and probably should be avoided in any case.

He’s also possibly missing out that the reason governments do infrastructure in the first place is that only governments can take a very long view and get their return indirectly via economic growth, that’s not so easy for private companies.

This is going to happen. Latest info suggests a flat tax relief rate of 30%. To be announced in the Budget this year.

I tried to find out Begg's background (CV etc.,). Didn't get what I wanted, but Wikipedia page on ICTU
http://en.wikipedia.org/wiki/Irish_Cong ... ade_Unions has a stat on union membership "In the Republic, over 60% of union members are in the public sector". If that's true, then it would explain some of Begg's policies.

The bit that makes me sick is that he gets free run when he's so deeply vested (including being on Central Bank board 1995 through 2010, and Aer Lingus board http://www.finfacts.ie/irishfinancenews ... 1252.shtml ), so the only two interpretations I see are

1. He hasn't a clue
2. He has a clue, and is happy to pillage private sector pensions to pay public sector (the resulting "class" tensions probably help shore up union membership in the public sector).

Those two options are not mutually exclusive.

The corruption of the likes of Fianna Fail is greed. They just want to get rich and don't really mind how.

The corruption of the Labour party and others on the Left is control. They want to control you, take your money and spend it the way they know is best. Begg is convinced he knows how to spend your money better than you.

Nowhere does he advocate generating investment money from savings. Public sector salary and social welfare payments annually total close to 40 billion. That is over twice the private sector pension funds of 70 billion in less than two years, every two years. Robbing capital investments to pay for unsustainable current account spending rather than reducing these costs makes no sense except in magical Beardy Begg and Beardy Jack Land.

It is now online:

http://www.rte.ie/podcasts/2012/pc/pod- ... _audio.mp3

Skip to 16:30

David Begg said:


around 20:40

Because nothing screams 'investment-grade' more than a country where the government is swiping peoples pensions.

True, evil and clueless, it would drive you to